All Things Digital

Skip to main content.

SEARCH
Voices

Voices

The Voices Feed

from other Web sites

Amazon Shows Time Value of Money

October 29, 2009
by Martin Peers
Columnist, Heard on the Street, The Wall Street Journal

Martin Peers

Just how long can Amazon (AMZN) put off paying its bills?

It’s no secret that Amazon’s financial success is partly based on its ability to take in money for selling merchandise before it has to pay suppliers for those goods. But lately Amazon has gone one better: steadily lengthening the time it takes to pay suppliers. That has been a factor behind the retailer’s soaring cash flow.

In the third quarter, for instance, Amazon stretched out its bill-payment to 72 days, up from 63 in the year-earlier period. As Behind The Numbers analyst Brian Evans notes, this “theoretically means that Amazon has not paid suppliers for sales consummated in mid-June.” Amazon’s sales rose 28 percent in the quarter, but accounts payable nearly doubled, helping push free cash flow up 116 percent to $696 million.

Read the rest of this post on the original site

Tagged: Internet, digital, economy, frontpage, software, , , , , , , , , , | permalink
« Previous Post
Next Post »

Featured Voices Posts

Featured Video

View All Jobs | Post a Job Job Listings

A sponsored service from SimplyHired

Voices Posts by Date

About Voices

This is a section of the All Things Digital Web site featuring posts from around the Web, from other Dow Jones properties and also original pieces we solicit. The section is now explicitly labeled that it comes "from other Web sites."

We are fully aware of the controversies around how linking and aggregating is done on the Web and we, in no way, are attempting to "scrape" original content created by others. Instead, regarding third-party posts, we are trying to point readers of this site to other posts from around the Web that we admire and are trying to do so in the quickest manner possible.

The Internet is full of terrific content that is not ours and we want to help our readers find it by making editorial suggestions--Look, Mom, no algorithm!--of posts we think are worth their time.

That is why we have made even more changes to Voices to ensure we do this in the most transparent and timely way. While we don't expect that everyone will agree with our policies, we have made changes that reflect our intent in pointing to content outside our site.

So here is exactly what we do: Read more »

About the Site

Because the site is wholly owned by Dow Jones, publisher of The Wall Street Journal, we aim to adhere to the journalistic standards of the best of the mainstream media. But, because it is run autonomously as a small online startup, we aim to exhibit the fresh thinking and nimbleness of the best of the new media. We want to be first, and sassy, but also well sourced and accurate. We will offer lots of opinion and analysis, but plenty of fact as well.

Read more »